US Financial Advisor,Louis Navellier warns of further trauma and pain and bankruptcies.
The US $ 700 billion Government bail-out plan for the USA Financial System scarily reveals that there’s no other alternative !
The hole according to US Advisor,Louis Navellier is US $ 41 Trillion…This is how he compiles this figure
“Here’s The Truth
- Fannie and Freddie are not out of the woods. They’re still on the hook for $5.4 trillion.
- Residential mortgages get the headlines but private-sector debt (auto loans, business loans, student loans, credit card debt etc) is the other, bigger side of the problem. Add $20 trillion.
- Commercial mortgages are another untold story. Add $2.6 trillion.
- The bailout plan ignores life insurance companies, credit unions, local governments (nearly $3 trillion in shaky munis alone!) finance companies and investment banks. Figure $7 trillion.
- And then of course there are the banks. The FDIC’s list of 117 troubled banks is a whistle in the dark. Navellier Research grades over 500 FDIC member banks and 100 S&L as financially troubled. That’s $3 trillion.
Add It Up: $41 Trillion “
And Paulson’s $700 billion is just enough to lull investors back to sleep.
Make no mistake: Wall Street has become the Love Canal of toxic money! It will take years, and in some cases a decade, to clean it up.
Truth is, in my 23 years as a financial advisor, I’ve never seen such a frightening global scenario:
- Where bankers have given up on the banking system
- The world has finally said “thanks but no thanks” to the almighty dollar
- Inflation is out of control
- Money market funds are failing, and
- Investors are fleeing to the “safety” of gold and commodities en masse…
- Truth is, my friend, Paulson’s $700 billion bailout plan is simply hiding the fact that our financial system is broken.
If you believe that Bernanke and Paulson’s plan will ultimately save U.S. investors, you’re going to get cut from the falling knife.
And while I can’t tell you which big financial institution will fall next, I can tell you this:
- We’re at the beginning of more banking failures and not at the end
- The government doesn’t have any more money to rescue any more banks, and
- The fallout will send the dollar crashing, raise inflation, panic investors and crush stocks again—worse than the 504-point, 450-point, and 372-point declines we’ve seen over the past 7 days. “